Clipper Oil: Latest Fuel News - Gas Prices: Expect Relief At The Pump This Fall

Latest Fuel News

August 2019

Gas Prices: Expect Relief At The Pump This Fall

With fewer than two weeks left in the “summer driving season" ending Labor Day weekend, you might wonder where gas prices are headed this fall.

You can look forward to less pain at the pump, experts say, but be ready for higher prices if hurricanes make their way to shore.

Across most of the country, motorists are forecast to enjoy savings of more than 25 cents per gallon compared to this summer, according to the American Automobile Association , which issued its fall gas price forecast on Thursday. AAA expects prices this autumn could average $2.40, down from $2.75 around July 4. Continue reading here (Source: USA Today).

The Real Reason Why US Oil Production Has Peaked

One of the basic assumptions or “Paradigms” that is keeping a lid on the price of oil is the belief that U.S. oil production will continue going up year-after-year. This paradigm is second only to the fear that the tariff war between the U.S. and China will go on for years, causing a global recession. FEAR has caused oil prices to fall back into the mid-$50s, not supply / demand fundamentals. It is important that energy sector investors know what’s going on in the real world because $55 oil is not a sustainable price for the world’s most important commodity.

In the real world, upstream oil & gas companies are slashing drilling & completion budgets and the active rig count is falling week after week. Today we aren’t completing enough new wells to offset the accelerating decline rate of existing wells.

Continue reading here (Source: Oil Price).

In the United States, Most petroleum Is Consumed In Transportation

Petroleum, which consists of crude oil and refined products such as gasoline, diesel, and propane, is the largest primary source of energy consumed in the United States, accounting for 36% of total energy consumption in 2018. Crude oil is processed at petroleum refineries to make many different products, such as motor gasoline, distillate fuel oil, hydrocarbon gas liquids , and jet fuel. More than two-thirds of finished petroleum products consumed in the United States are used in the transportation sector. The U.S. Energy Information Administration’s (EIA) U.S. petroleum flow diagram helps to visualize U.S. petroleum supply (production, imports, and withdrawals from storage) and disposition (consumption, exports, and additions to storage). Continue reading here (Source: U.S. Energy Information Administration ).

Report Ranks Countries By Gasoline Sulfur Content

Stratas Advisors, a consulting firm that focuses on the energy sector and related industries, has released its annual Top 100 Ranking on Gasoline Sulfur Limits. The report confirms the continued worldwide movement toward lower sulfur content in gasoline. It cites several countries that have positioned themselves through policy initiatives to make advances in this area in the near future.

ELI countries continue to dominate the Top 40, as they were required to implement 100% market penetration of lower than 10 parts per million (ppm) fuels since January 2009. Germany, which led the way with full market penetration in 2003, continues to rank number one. Since none of the top ten countries reduced their national sulfur limit to 10 ppm, the top SS countries last year retained their ranking this year.

Ten countries moved up or were newly added to the Top 100 in 2019, including Benin, Fiji, Ghana, India, Jordan, Kazakhstan, Kyrgyzstan, Niger, Oman, and Tajikistan. Continue reading here ( Source: Fuels and Lubes).

Possible Currency War Would Be A Disaster For Oil

Oil prices plunged on Friday after the U.S. and China both announced tariff hikes in tit-for-tat fashion. At the same time, markets opened on a positive note early Monday after President Trump struck a more conciliatory tone. But the respite could be brief.

Global financial markets are completely at the mercy of Trump’s twitter account these days. On Friday, stocks and commodities fell sharply after China announced an increase in tariffs on U.S. goods. In response, Trump announced yet another 5 percent increase in the suite of tariffs on Chinese goods, although, notably, he waited until after financial markets had closed for the week. Continue reading here ( Source: Oil Price).

EIA Updates Its U.S. Energy Consumption By Source and Sector Chart

Energy consumption in the United States reached a record high of more than 101 quadrillion British thermal units (quads) in 2018, barely surpassing the previous high recorded in 2007 by less than 0.3%. The U.S. Energy Information Administration (EIA) has redesigned its U.S. energy consumption by source and sector chart to separate the electric power sector from the four end-use sectors. The new chart shows electricity retail sales to each end-use sector and the amount of electrical system energy losses within the electric power sector from generation, transmission, and distribution of electricity. Continue reading here (Source : U.S. Energy Information Administration).